State and Local Tax (SALT)

Understanding a company’s business tax and sales and use tax obligations are now more important than ever in light of South Dakota v. Wayfair. Before Wayfair, a seller needed physical presence to trigger nexus in a state. Now, mere sales into a state can trigger economic nexus. For sales tax purposes, economic nexus has been enacted in every state that collects sales tax, with Missouri being the final state to come on board effective January 1, 2023.

Companies who sell tangible personal property, services, software and cloud computing products/services should take steps to make themselves aware of where and when they cross the nexus thresholds in a state, not only for sales tax purposes but also for income, franchise, and gross receipt taxes that are assessed on the business entity. How does a company accomplish that when the rules and thresholds are different in every state? The best way to keep on top of evolving nexus laws is to have the SSF SALT team to perform a nexus study for business activity tax and sales and use tax.

A nexus study is an in-depth analysis that will evaluate your companies economic and physical nexus. We can also calculate potential tax liability, provide taxability guidance, prepare voluntary disclosure agreements (VDA) and more.